According to Entrepreneur magazine, market research is “The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business’s target market, the industry as a whole, and the particular competitors you face.” I prefer my graduate professor’s definition, which is: “Marketing research provides business leaders/managers with the information they need to make those decisions.” (Prof. Jaclyn Tenenbaum). There are traditionally two types of research data: primary and secondary. Although each method has its benefits and disadvantages, they both can be effective tools, if used correctly in the marketing research process.
What is Primary Data?
Primary data is research that you collect yourself for a specific purpose. It is information received directly from an external source. This information may be obtained through surveys, interviews, focus groups, observations, and/or independent studies. The data, collected in-house, is often considered to be a reliable tool to use in market research since it is easier for you to trace the sources of the information. One of the benefits of obtaining primary research is that you retain ownership of the results, which are often tailored directly to your objectives. This can provide a competitive advantage since the information will not be shared with others. This data can be exploratory, denoting that it is broad and open-ended, and is normally used early in the decision phase of marketing research. It might also be confirmatory, which means that it contains specific information that can offer a resolution to the goals of the research. For this reason, it is normally obtained later in the decision phase.
What is Secondary Data?
Secondary data is information that has already been collected by others. This research could have been done by your company or by an external source. Either way, it has been compiled for a reason other than the one for which you plan to use it. This type of research is less expensive, easier to obtain, and more readily available, as compared to primary data. Because this information was obtained for a different purpose, it is important to make sure that you understand how it relates to your current objectives. This data is often broader and may take more time to sift through. Sources of secondary data include internet articles, government agencies, financial reports, analytics, previous research, trade journals, libraries, as well as a variety of other sources.
Evaluating the Results
Once you have obtained your research goals, you need to consider whether they can be met using secondary research alone, or if primary research will be necessary. It is often the case that both methods are required in order to reach a trusted conclusion. More weight should be placed on primary data, which should be as objective as possible. It is also important for it to be up-to-date, accurate, relevant, understandable, and actionable.
Overall, primary data stands out as the preferred method of obtaining information for your research. It provides more accurate data that is up-to-date and allows you the ability to control the process of gathering the information. Most importantly, primary data enables you to retain ownership of the information gathered, which can be useful because the information will be hidden from competitors. Secondary data also has its benefits and is something to explore, especially when there are time constraints or financial limitations. It also can be used to confirm primary data. Both types of data are useful tools to assist in your marketing objectives, to create further opportunities, to target the right consumers, and to generate revenue. You will most likely discover even more benefits of both methods, as you begin to put them to work.
For more marketing information and articles like this one, please visit my last post: CREATING A ROADMAP FOR YOUR ALBUM